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SMB0.32268710.076658 4.2094352 9.36E-005 0.1691226 0.4762516 0.1691226 0.4762516HML0.0823834 0.0808613 1.0188232 0.3126684 -0.079601 0.2443681 -0.079601 0.2443681
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SUMMARY OUTPUTRegression StatisticsMultiple R0.93283R Square0.87017Adjusted R0.86321Standard E0.01874Observatio60ANOVAdfSSMSFSignificance FRegression3 0.1317682 0.0439227125.108 8.46E-025Residual56 0.0196604 0.0003511Total59 0.1514285Coefficientstandard Errot StatP-valueLower 95%Upper 95%Lower 95.0%Upper 95.0%Intercept0.0021241 0.0024653 0.8615938 0.3925855 -0.002814 0.0070627 -0.002814 0.0070627Mkt-RF1.0452571 0.0667126 15.668053 3.97E-022 0.9116156 1.1788985 0.9116156 1.1788985SMB0.4656911 0.1220594 3.8152836 0.0003417 0.2211768 0.7102054 0.2211768 0.7102054HML-0.265235 0.1287521 -2.060042 0.0440532 -0.523156 -0.007313 -0.523156 -0.007313
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Chapter 13The Cost of Capital for Goff Computer, Inc.Input area:Bond 2013 maturity book value$6002013 bond price94.3672013 bond YTM6.221%Bond 2018 maturity book value$5002018 bond price92.1062018 bond YTM6.811%Bond 2028 maturity book value$3002028 bond price91.6722028 bond YTM7.949%Bond 2038 maturity book value$4002038 bond price80.7252038 bond YTM8.254%BV of debt (balance sheet)$1,851BV of equity per share$2.139Stock price$11.20Shares outstanding (billions)1.94Beta1.4103-month Treasury bill rate0.10%Market risk premium7.00%Bond 1 price100.433Bond 1 YTM5.124%Tax rate35%Output area:2)9.97%3)CompanyBetaApple Inc.1.87Dell1.41Hewlett Packard1.19Sun Microsystems1.92Ingram Mico Inc.1.18Tech Data Corp.1.28REfrom CAPM
Electronics for Imaging1.40Palm, Inc.2.16Digi International0.62Agilysis, Inc.1.84Rackable Systems, Inc.1.62SeaChange International0.62MIPS Technologies1.89Silicon Graphics1.28Cray Inc.1.87Industry Average1.4810.44%4)Bond 1$6000.33Bond 25000.28Bond 33000.17Bond 44000.22Total$1,800 $1.005)Book value of equity$4.1497billionMarket value of equity$21.7280billionBook value of company$5.9497millionMarket value of company$23.3526millionWACC using book value8.07%WACC using market value9.60%REwith industry betaBook value(millions)Percentof total
94.367 $566.2020.356.221%2.07%2.17%92.106460.5300.286.811%1.89%1.93%91.672275.0160.177.949%1.32%1.35%80.725322.9000.208.254%1.83%1.64%$1,624.651.007.12%7.08%QuotedpriceMarket value(millions)Percentof totalYield toMaturityBookvaluesMarketvalues
Chapter 16Stephenson Real Estate RecapitalizationInput area:Shares outstanding15,000,000Share price$35.50Purchase price$60,000,000Increase in cash flow$14,000,000Current cost of capital12.50%YTM on new debt8.00%Equity weight in new capital structure70%Tax rate40%Output area:Recomendamos emitir deuda,.2.Assets$532,500,000Total assets$532,500,0003.a)Aftertax earnings increase$8,400,000NPV$7,200,000b)Assets$532,500,000NPV of project7,200,000Total assets$539,700,000New share price$35.98New shares issued1,667,593Pricec)Cash$60,000,000Old assets532,500,000NPV of project7,200,000Total assets$599,700,000TotalNew shares outstanding16,667,593
New share price$35.98d)PV of the project$67,200,000Old assets$532,500,000PV of project67,200,000Total assets$599,700,0004.a)Market value of company$601,620,000b)Value unlevered$599,700,000Tax shield24,000,000Total assets$623,700,000New stock price$37.585
acciones en circulaciónPrecio de la acciónPrecio del terrenoIncremento del flujo de caja anualCosto de capitalTasa cupón del BonoYield to maturityPorcentaje de capitalTasa impositivaPorque ele costo de esa fuente es menorEquity$532,500,000Total Debt & Equity$532,500,000Equity$539,700,000Total Debt & Equity$539,700,000Equity$599,700,000Total Debt & Equity$599,700,000
Equity$599,700,000Total Debt & Equity$599,700,000Debt$60,000,000Equity563,700,000Total Debt & Equity$623,700,000
Chapter 17McKenzie Corporation's Capital BudgetingInput Area:ProbabilityRecession0.30$30,000,000 $33,000,000Normal0.50$35,000,000 $46,000,000Expansion0.20$51,000,000 $64,000,000Face value of debt$34,000,000Cost of expansion$8,400,000Output Area:1)Expected value of firmWithout expansion$36,700,000With expansion$45,700,000Expected NPV$600,0002)Value of debt

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Depreciation, Corporate Finance, Generally Accepted Accounting Principles, Input area, Output area

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